What to look out for in your Short Sale Approval Letter? THREE TIPS
FIRST; congratulations!!! Getting a Short Sale APproval letter is a very hard thing to accomplish. HOw many times did you send in your Third Party Authorization form? HOw many times did you have to send in an updated Pre-Approval letter? Or a newly signed 4506-T? I bet several times. Getting a short sale approved is a monumental task-no doubt.
The work is NOT over by any means. You must now get the buyer to close in compliance with that short sale approval letter or short sale letters. This process is sometimes more difficult than getting the approval letter.
Here are some pointers:
- Notify all parties. The buyer and seller of course but all the professionals involved. MOrtgage brokers, attorneys, title companies and of course the realtors. I send out a group email with return receipt to all parties and I outline the details o f the approval. Such as closing date; terms; seller relocation amounts and other pertinent details
- Read the approval letter twice maybe three times. Read every line. Sometimes you will notice something that is not quite right. For instance the buyers name is spelled wrong; or the approval letter does not approve a 6% real estate commission or it states that the seller will get relocation funds; but it is not listed in the detailed breakdown. Of course if the letter seems wrong; check it again and then reach back to the short sale lender and ask them about the potential problem.
- Check the dates and put them in your calendar system. I would put the approval date; the closing date as well the date as to when the short sale lender wants the draft HUD prior to closing. Sometimes it is 48 hours before closing.
Every time you get an approval letter should be cause for celebration as they are so hard to get. However make sure that your party is SHORT. There is still work to be done before you can close this deal. Now it is your job to notify all parties of their obligations and responsibilities. One file tip-FOLLOW UP!!! Follow up with everyone on your congrats list. I would follow twice a week moving forward. You need to make sure that everyone is doing their job.